Question

You sell 200 shares of a stock short for $52 per share. You want to limit your loss on this transaction to no more than $1,500. What order should you place? You should place a nearest dollar.) ▼ order to , 200 shares at S Choose the correct answer rom each drop-down menu and round to the

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Answer #1

Please find below solution...

You should place a STOP LOSS order to BUY 200 share at $ 59.5.
Computation of price -
Number of share = 200
Max loss = 1500
Increase in price per share = 1500/200 7.5
Therefore stop loss price = 52+7.5 59.5
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